Perpetuity factor: Difference between revisions
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* [[Annuity factor]] | * [[Annuity factor]] | ||
* [[Perpetuity]] | * [[Perpetuity]] | ||
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Revision as of 14:17, 12 August 2014
The fraction 1/r used when evaluating a fixed perpetuity. Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity.
Sometimes known as the Perpetuity formula.
